Mario Batali Wants to Move On
Is it too soon? Mario Batali, accused of sexual harassment and removed from the company bearing his name, is exploring a new venture. In December, reports of sexual misconduct rattled the Batali & Bastianich Hospitality Group, and Batali admitted that accusations “match up with ways” he behaved. At the time, he emailed an apology but lost ground when he included a "P.S." with a recipe for making cinnamon rolls.
Now, about four months later, people report that Batali is exploring his options. Reports say he is considering moving to the Amalfi Coast, aiding displaced Rwandans, or creating a new company.
A New York Times article speculates that Batali may be in a good position to return to public life:
He still has legions of fans and colleagues who admire and respect his generosity, culinary knowledge and charisma. Many still post their interpretations of his recipes on Instagram, ask him for selfies on the street or urge his return to “The Chew” on Facebook. His restaurants continue to attract customers.
Friends also say that he is truly taking time to be introspective and to learn from his mistakes. But not everyone agrees that a comeback would be appreciated. Anthony Bourdain, for example, isn't ready:
Retire and count yourself lucky, I say that without malice, or without much malice. I am not forgiving. I can’t get past it. I just cannot and that’s me, someone who really admired him and thought the world of him.
Discussion:
- What's your view? Is it too soon, or is the time right for a Batali return? What should he consider in making this decision? What are the potential implications for women who complained about his behavior and for the company?
- Batali mentions wanting to understand his "blind spots." What does he mean by this?
Howard University Responding to Embezzlement
Six student employees were terminated by Howard University for embezzling financial aid funds. The students made up fake scholarships and found other ways to steal what could be more than $1 million.
On Twitter, the student association unleashed its frustration with the university's response. In a statement, President Wayne Frederick expressed empathy for this frustration and for other reactions:
Hearing about the mishandling of funds at the University can be difficult to process. I can also understand how upsetting it is to feel that the University has not communicated with you regarding this incident. The goal established at the onset of this investigation was to conduct it in a confidential manner that ensured a thorough examination of the issues without jeopardizing the integrity of the findings. However, that does not mitigate the sense of mistrust that many students and members of our community feel right now. We understand that and we hear you.
The statement also describes plans for investigating the charges and ends on a positive note.
Discussion:
- The above paragraph from the president's statement raises an interesting conundrum: how do leaders ensure both privacy and transparency? The same issue is relevant to investigating sexual harassment claims. What are your thoughts? How, if at all, is it possible to achieve both?
- Assess the president's statement. Who is the audience, and what are the communication objectives? How is the statement organized? How would you describe the writing style, tone, and so forth?
- How well does the president's statement demonstrate accountability?
FB Admits Mistakes and Makes Promises
After five days of silence, Facebook CEO Mark Zuckerberg is addressing new criticism about privacy issues. Recent reports describe how Cambridge Analytica used data from about 50 million FB users without their permission, possibly to influence voters during the 2016 presidential campaign. Although some users gave permission for their information to be shared, their "friends" didn't, and this gave developers enormous amount of data about people's preferences. In addition, Cambridge claimed it had deleted data in 2014, but new reports indicate it did not.
Now Zuckerberg is visible in the media and has issued a statement that included the company's responsibility and failings:
We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you. I’ve been working to understand exactly what happened and how to make sure this doesn’t happen again. The good news is that the most important actions to prevent this from happening again today we have already taken years ago. But we also made mistakes, there’s more to do, and we need to step up and do it.
He also told CNN, "I'm really sorry that this happened." He promised to limit developers' access to data in the future.
Facebook also published a full-page newspaper ad in the New York Times on March 25.
Discussion:
- How does this situation represent issues of integrity and trust?
- Read Zuckerberg's full statement. Which parts do you find most and least convincing?
- How is the statement organized? Is this the best approach, or could other organizational strategies have worked better?
- Assess Zuckerberg's writing style. Which principles of business writing are followed, and which are not?
Uber Halts Self-Driving Cars Following Death
A self-driving Uber killed a pedestrian in Tempe, Arizona, and the company is trying to understand what happened. In the meantime, CEO Dara Khosrowshahi posted condolences on Twitter. An Uber spokesperson also made this statement:
“Our hearts go out to the victim’s family. We are fully cooperating with local authorities in their investigation of this incident.”
Apparently, a woman walked suddenly in front of the vehicle, and the local chief of police said, "It’s very clear it would have been difficult to avoid this collision in any kind of mode." A human backup driver, who was in the driver's seat without control over the car, confirmed the report. The first sign of trouble was the actual collision.
As a result of the accident, Uber announced it will stop all testing of autonomous cars. In California, autonomous Ubers were set to launch without human backups, but this may be delayed.
Discussion:
- Assess the company's response to the news. We don't see an apology, per se. Should we?
- How can the company rebuild trust in self-driving cars after this incident?
Facebook Under Scrutiny
Questions about Facebook's role in user privacy are getting increasingly serious, and shareholders are getting worried. Company shares fell 7% after the news that third-parties used FB users' personal information without permission.
Analysts say we know that Facebook monetizes users' data, but the number of people affected (50 million) and the extent of the violation is dramatic. One concern is how much additional regulation the company will face in the future. Already, the Federal Trade Commission (FTC) is investigating whether Facebook violated a 2011 settlement in which the company promised to get users' consent before changing certain privacy settings.
We have no comment yet from Mark Zuckerberg or Sheryl Sanberg, and critics say they need to be out in front of this.
Discussion:
- A Bloomberg reporter called the company "tone deaf," but others say it's an impossible situation to fully address at this point. What's your view?
- What, if anything, should company leaders say? What could explain their silence?
- In what ways is this situation an issue of integrity for the company?
Stanford Event Criticized as "Too White and Too Male"
The organizer of a history conference at Stanford admitted to having trouble identifying a more diverse panel of speakers. All 30 are white men.
Priya Satia, history professor at Stanford said, “Given how prevalent women are in the history department, you’d have to try really hard to come up with a roster of speakers that looks like that." Satia also leads the history department's diversity committee.
Referred to as a "conservative British historian" by the New York Times, Niall Ferguson says he invited women, but only one could attend. Ferguson also said, "We all agreed that we must redouble our efforts to represent diverse viewpoints in future conferences."
Discussion:
- What are some possible reasons for the lack of diversity?
- Should Ferguson have done more to recruit women and people of color? How could he approach the conference planning differently?
- What is Stanford's responsibility? I don't see a statement from the university.
- In what ways does Ferguson demonstrate vulnerability, and in what ways does he fall short?
Toys R Us Closes
https://www.toysrusinc.com/restructuring
Toys R Us will close its remaining 735 U.S. stores and will lay off about 33,000 employees around the country. The company tried to survive after a bankruptcy filing in 2017, but the retailer can't compete with large stores, such as Walmart, and online sellers, such as Amazon.
Critics say Toys R Us failed to generate excitement, as one analyst describes in The Washington Post article:
“The liquidation of Toys R Us is the unfortunate but inevitable conclusion of a retailer that lost its way. Even during recent store closeouts, Toys R Us failed to create any sense of excitement. The brand lost relevance, customers and ultimately sales.”
A professor of brand management echoed this theme:
“We know that customers are willing to pay more for an enjoyable experience — just look at the lines at Starbucks every day — but Toys R Us has failed to give us anything special or unique. You can find more zest for life in a Walgreens.”
New York Senator Chuck Schumer is asking for the Federal Trade Commission (FTC) to ensure that customers aren't left "holding the bag" if they can't cash in or buy products with gift cards, particularly those recently received in December for Christmas.
Toys R Us has only a short statement on its website announcing the liquidation.
Discussion:
- Should the company leaders say more about the decision? What else, if anything, could be included in the statement?
- In addition to legal responsibilities, do company leaders have ethical responsibilities to make good on outstanding gift cards? Why or why not?
- In what ways has the company failed to learn from failure?
Fired by Tweet
According to an NBC report, Secretary of State Rex Tillerson learned he was fired when President Trump posted a tweet. The President did call Tillerson in for a face-to-face meeting, but this happened "several hours after the president had publicly announced Tillerson's firing on Twitter." The White House claims that Tillerson was put on notice that his time was coming to an end, but Tillerson says he was shocked at the news.
The relationship had been rocky. The two disagreed over policy issues, such as the Russian's government's involvement in U.S. elections and negotiations with North Korea. In July of last year, Tillerson referred to President Trump as a "moron."
Of his termination, Tillerson said,
"What is most important is to ensure an orderly and smooth transition during a time that the country continues to face significant policy and national security challenges."
Discussion:
- What is the best way to deliver bad news?
- We have heard of many business situations in which employees are fired by text message. How does this situation compare?
- In what ways is this situation a matter of leadership character, for example, compassion or integrity?
Adam Rippon Demonstrates Authenticity and Questions Pence
U.S. Olympic figure skater Adam Rippon has been public about being gay and having a history of an eating disorder. Rippon says he felt pressure to fit a particularly body image and sometimes starved himself to achieve it.
In January, Rippon said he would refuse a meeting with Vice President Mike Pence because of his support of "conversion" therapies, attempts to change someone's sexual orientation or gender identity. Pence denied the claim and expressed support for all athletes:
“The accusation is totally false with no basis in fact," Alyssa Farah, Pence's press secretary, stated. "But despite these misinformed claims, the Vice President will be enthusiastically supporting all the U.S. athletes competing next month in Pyeongchang.”
However, an NBC article identifies a message on Pence's website that supports Rippon's claim:
Under the headline "Strengthening the American Family" and just below his stated opposition to same-sex marriage and anti-discrimination laws protecting "homosexuals," Pence's platform advocates that resources "be directed toward those institutions which provide assistance to those seeking to change their sexual behavior."
Discussion:
- What's your view of Rippon's statement?
- Explain VP Pence's statement given his documented platform? How do you reconcile the claims?
- In what ways does Rippon demonstrate authenticity?
L.L. Bean: Return Doesn't Mean Lifetime Replacement
L.L. Bean has had it with customers who abuse their generous return policy. The company is making two major changes: customers must return products within one year unless they are damaged, and customers must produce a receipt.
A company spokesperson explained the decision:
"If it's been over a year and someone is able to provide a proof of purchase and if the product does not fall within one of our Special Conditions such as products damaged by misuse, abuse, pet damage, personal reasons unrelated to product performance or satisfaction and more, we would honor the return."
Although it was a small percentage of customers, some had taken advantage of the product "guarantee." The question we might ask is, Why did it take so long? Or, why now?
Discussion:
- Why do you think L.L. Bean waited until now to tighten the return policy? What are the potential consequences of the decision?
- Assess the message to customers. Who are the primary and secondary audiences? How well does the message meets its objectives?
- How do you see this as an issue of integrity? How is L.L. Bean demonstrating learning from failure?
Misleading Headlines About the Market Dip
The stock market took a dive this week, but headlines are making it sound worse than it is. Here are three examples:
- FoxNews: "Investors hope for reversal after biggest stock market dip of all time"
- The Guardian: "Australian and Asian stock markets slide after Dow suffers biggest one-day points fall – as it happened"
- CNBC: "Dow's nearly 1,600-point plunge marks its biggest one-day point drop ever"
The headlines are technically correct that a nearly 1,600 point decline is the largest in U.S. history, but looking at only the point value is misleading. A percentage drop would be a better indication of the effect. This table represents the largest daily stock market losses. The display below is sorted by point loss; the table at right is sorted by percentage. You can see that 2018-02-05 falls in rank when we look at the percentage.
Also, the stock market has had incredible gains this past year, so the 26,000+ value could be viewed as an anomaly, and most analysts didn't believe those gains were sustainable.
Discussion:
- What are the ethical considerations for news agencies publishing these headlines?
- What might be a more appropriate headline for the news?
Perhaps this one-year chart helps keep the loss in perspective. It includes today's rebound of 567 points.
Questions of Transparency
The long-awaited memo written by Republican staff members about potential impropriety from the Justice Department and F.B.I in the Russia investigation has been revealed. Now, The New York Times editorial board is calling, once again, for President Trump to reveal his tax returns:
Since the Republicans are now on board with greater transparency, they will no doubt push President Trump to release his tax returns, as every other major-party presidential nominee has done for the past four decades, won’t they?
How about the White House visitor logs, which the Trump administration started hiding from the public last year? Or, say, the names of all foreign governments and officials who have stayed — at their own or at American taxpayers’ expense — at Mr. Trump’s Washington hotel, at his Mar-a-Lago resort in Florida or at his golf courses and his other businesses since he became president? Or the names of every foreign business with which the Trump Organization has a financial relationship, especially in countries where America has sensitive foreign policy interests, like China, India, Russia, Turkey or Saudi Arabia?
The reasoning sounds like reciprocity, but the argument may not get no more traction now than it did during the presidential campaign. A Pew research study in January 2017 showed that 60% of those surveyed believed Trump "has responsibility" to release his returns. Although some were adamant about the release at the time, the Wall Street Journal, for example, reported that the returns wouldn't tell us much anyway.
Discussion:
- What are the advantages and downsides of President Trump revealing his tax returns?
- Read the entire opinion piece. What other arguments do the authors make?
- Do you agree with their reasoning? Why or why not?
- How would you describe the tone? Does the approach help or hurt the argument?
No More "Chief Wahoo" for Cleveland Indians
The Cleveland Indians has decided to remove its controversial logo, Chief Wahoo. Baseball Commissioner Rob Manfred encouraged the team to change the design on its uniforms, where it had been placed since 1948.
Although some fans feel attached to the logo, others feel, as a New York Times article describes, "the use of ethnic groups as mascots and nicknames for teams is demeaning."
Manfred explained the decision in a statement:
"Major League Baseball is committed to building a culture of diversity and inclusion throughout the game. Over the past year, we encouraged dialogue with the Indians organization about the club's use of the Chief Wahoo logo. During our constructive conversations, [Indians owner] Paul Dolan made clear that there are fans who have a long-standing attachment to the logo and its place in the history of the team.
"Nonetheless, the club ultimately agreed with my position that the logo is no longer appropriate for on-field use in Major League Baseball, and I appreciate Mr. Dolan's acknowledgement that removing it from the on-field uniform by the start of the 2019 season is the right course."
Groups are pressuring the Washington Redskins and Atlanta Braves to change their names.
Discussion:
- Do you find the Chief Wahoo symbol offense? Why or why not? If not, how would you describe the position of those who do?
- Did the Cleveland Indians make the right decision? Some believe Manfred overstepped by pressuring the team. What are your thoughts?
Call for Gymnastics Board to Resign
As female athletes are recognized in a full-page newspaper ad for their courage in telling their stories of abuse, the U.S. Olympics CEO is calling for the entire USA Gymnastics board to resign by Wednesday.
In an open letter to Team USA Athletes, CEO Scott Blackman apologized and identified four next steps:
1. We Must Change the Culture of the Sport.
2. We Must Change the Governance Structure of the NGB.
3. We Must Know Who Knew What and When.
4. We Must Support Safe Sport Victims and Survivors.
Three members of the board already resigned, but critics say that is not enough. Blackman doesn't accuse any board members of knowing about abuse, but he says the culture must change and this is the best way to achieve that change.
Discussion:
- What is the value of asking for the entire board's resignation? What, perhaps, are the limitations?
- What should the board do?
- How else can Blackman and the rest of the Olympics Committee make athletes feel safe again?
MSU President's Resignation Letter
After calls for her resignation, Lou Anna Simon, the 13-year Michigan State University president submitted her letter. She could not escape criticism that she knew of Dr. Larry Nassar's sexual abuse of students and didn't do enough. Simons admitted encouraging an investigation and not receiving the final report. Reports also say that at least 14 university staff members received complaints about Nassar over two years.
Although most of the board initially supported her, students and others did not, and in the end, the board chair wrote, "We agree with Dr. Simon that it is now time for change."
Simon's letter is a mix of sympathy for the victims, love for the college, and defeat. In this paragraph, she focuses on blame:
As tragedies are politicized, blame is inevitable. As president, it is only natural that I am the focus of this anger. I understand, and that is why I have limited my personal statements. Throughout my career, I have worked very hard to put Team MSU first. Throughout my career, I have consistently and persistently spoken and worked on behalf of Team MSU. I have tried to make it not about me. I urge those who have supported my work to understand that I cannot make it about me now. Therefore, I am tendering my resignation as president according to the terms of my employment agreement.
Discussion:
- Critics say Simon shifts accountability in her letter, particularly the paragraph above. What's your view?
- Did Simon make the right decision? Why or why not?
- What should the university do to help the campus recover from this situation? How can they rebuild trust and make MSU feel like a safe place?
Fudging Numbers to Make the NYC Subway Look Better
New York Governor Andrew Cuomo's staff is criticized for inflating power-related issues as the cause of subway failures. Transit officials apparently broadened the definition of power issues so that Con Edison, the local utility company, would be given more of the blame when subways aren't running. Emails were discovered before Governor Cuomo was scheduled to give a breakfast talk, during which he said the number of outages due to power failures was 32,000 in the past year, while the actual number was more like 8,000:
When you we're a kid and you had a train set you had to plug it in. We have to plug in the MTA every morning and the MTA does not control the power supply to the MTA. Over the last 12 months, 32,000 delays because of power related issues and they can either be a power surge or power shortage, but 32,000 delays. The MTA doesn't control the power, Con Edison does. Con Edison has a duty to safely, prudently and effectively provide electricity that powers the subway system. Con Ed is a regulated utility under the state's Public Service Commission. April 21 after the last outage I ordered an investigation of the Con Ed infrastructure after a particularly devastating failure. The investigation goes on but PSC has already found that Con Ed must make immediate and significant improvements in this system because the reliability depends on it.
The chief of staff of the transit agency wrote in an email that they were "looking for a higher delay number for power." The expanded definition was that ConEd "caused or contributed to" delays. One example is when a person jumps or falls onto the tracks; ConEd will shut off the power for safety. With the new definition, the delay becomes ConEd's fault.
Discussion:
- We certainly can use numbers to our advantage when trying to persuade others. How does this situation "cross a line"?
- What should Governor Cuomo do now? What, if any, statement would be appropriate?
- Do you remember "Bridegate" in New Jersey? How is this situation similar or different?
Calls for Michigan State President to Resign
Some believe it's a matter of integrity and accountability; others believe this will start the healing process. In addition to public demands, one Michigan State trustee says it's time for the university president to resign over Dr. Lawrence G. Nassar's sexual abuse of dozens of female athletes.
The rest of the university trustees have shown public support for the president, Lou Anna Simon. In a statement, they said, "President Simon is the right leader for the university, and she has our support." But the sole trustee, Mitch Lyons, disagrees:
“I don’t feel that President Simon can survive the public outcry that has been generated by this tragedy. I feel that our best recourse is for President Simon to resign immediately in order to allow the healing process to begin."
According to a Detriot News story, several university officials, including the president, heard complaints about Nassar. Simons admits, “I was informed that a sports medicine doctor was under investigation. I told people to play it straight up, and I did not receive a copy of the report. That’s the truth.” People question her judgment in not seeing the final report, particularly given the recent explosive case at Penn State University. We will see what happens next.
Discussion:
- Should Simon resign? Why or why not?
- What does it take for Lyons to break rank with the rest of the trustees? How would you describe the possible dynamics on the board?
- How does such abuse go on for so long? About 140 women complained about Nassar when he was working with Olympic athletes, and at least eight students came forward at the Michigan State.
- At the end of the trustees' statement, a reporter asks, "Why no questions?" But the board leaves the room without saying anything. Should they have taken questions? Why or why not?
President Trump Refers to "S---hole" Countries
During a meeting about immigration policy, lawmakers heard President Trump ask why the U.S. would admit people from "s---hole" countries like African countries and Haiti instead of places like Norway.
I have refrained here as have some TV news stations (NBC, shown here), but the major print news outlets—NY Times, Washington Post, and Wall Street Journal—all printed the actual profanity. The New York Times explains the decision:
But several media executives said on Thursday that the news value of Mr. Trump’s remarks, which the White House did not dispute, was undeniable.
“It would be futile to mask the word when the language itself, in reference to Haiti and African countries, was so extraordinary,” said The A.P.’s vice president for standards, John Daniszewski.
Discussion:
- Why would some media outlets use the word, while others avoid it? What does the decision involve?
- Some take issue with the reporting about "vulgar," "crude," or "profane" language, calling for the press to call the president a "racist" instead. What are your thoughts? First, does the comment indicate that he is a racist? Second, should the news agencies report this differently?
- An argument could be made that the president is just being himself, authentic. What do you think of this view?
NBC's Integrity Called Into Question
NBC's Twitter account manager overstepped when posting about Oprah at the Golden Globes.
The company tweeted a correction and removed the post:
"Yesterday a tweet about the Golden Globes and Oprah Winfrey was sent by a third party agency for NBC Entertainment in real time during the broadcast. It is in reference to a joke made during the monologue and not meant to be a political statement. We have since removed the tweet."
Donald Trump Jr. didn't miss the chance to reinforce his father's criticism of mainstream media as "fake news."
Discussion:
- How well did NBC handle the situation? What else, if anything, should the company do?
- How damaging do you think this tweet is for NBC and for mainstream media?
- To what extent did NBC demonstrate accountability?
- What are the other dangers of outsourcing a Twitter account? (Hint: authenticity)
More Water Issues for Flint and No Response
Flint, Michigan, is in the news again for poor water quality. After findings of too much lead in drinking water, the city was under an agreement to replace faulty pipes, provide water filters, and report on progress. However, advocacy groups say the city is already falling short of the terms set in March of this year. According to the NPR article, "City and state officials did not immediately respond to the allegations."
Although some water service lines have been replaced, the number is not keeping pace with the agreement. Critics say that "all of the City's status reports have been late, incomplete, inaccurate, or a combination thereof."
The government has its own messaging on a website from the mayor's office. According to the data and chart, the city is "on track."
Discussion:
- Read the criticism and the mayor's report. What are the discrepancies, and how do you account for them?
- What else, if anything, should the city do to communicate its progress and demonstrate accountability?